Canada: short-term hog loan changes

Canadian Agriculture Minister Bob Bjornerud has
announced an optional one-year deferral of the principal payments owing on the
short-term Hog Loan Programme.

Hog producers will have the option to defer the principal portion of the
first payment from May 2009, to May 2010. Also removed is the requirement for
accelerated repayment when the weekly pool price exceeds $140 per ckg (price per
100 kilograms).

Cattle and hog producers opting for the principal payment
deferral will still be required to pay any interest that has accrued on their
loans. "Cattle and hog producers continue to face financial pressures,"
Bjornerud said. "The industry has requested this principal payment deferral to
help producers cope with the challenges they face."